Automatic toll collection aims at eliminating the delay at toll plazas by collecting toll without cash.In many developed coun-tries the toll collection is implemented by using Radio Fre-quency ID (RFID).But using RFID is very costly. So image pro-cessing can be used as an alternative. In this paper, a camera will be used to take picture of the vehicle’s license plate to sort the toll charge according to vehicles category.Using the captured picture,with the help of which a image processing technique will be implemented to extract the registration number of the car from the license plate, with the help of this extraction the details of the vehicles owner will be extracted from the database and the respective amount will be deducted, because that person has already paid the toll amount in advance for a respective dura-tion In addition with multiple automatic toll taking booth there can be a manual booth with operator who will handle those ve-hicles which experience issues like not registered user or balance is empty.The system is more flexible and can be used at different toll plazas within a country by providing unique id for the toll plazas.